Indorama Ventures Public Company Limited (IVL), a global chemical producer, accounced its takeover of Sorepla Industrie S.A., a plastics recycling facility in France on 31 July 2018. Founded in 1991, Sorepla Industrie facility has three production lines: Recycled Polyethylene Terephthalate (rPET), Recycled High Density Polyethylene (rHDPE) and food-grade Pellets, with a combined capacity of 52,000 tons per annum. Sorepla has been consistently providing quality recycled PET material as per customers’ specific needs in packaging and fibers despite the fluctuations in the quality of post-consumer feedstock.
The acquisition supports the Indorama’s objectives of long-term sustainability. The addition of Sorepla will benefit IVL to become one of the leaders in recycling in Europe. Furthermore, it will help IVL to meet the increasing demand for food grade rPET. While IVL has a significant recycling footprint in France through its subsidiary Wellman France Recyclage in Verdun, the acquisition will allow the company additional capabilities to deliver food grade rPET to serve major brand owners looking for more sustainable packaging solutions. Sorepla’s proximity to existing recycling business, synergies of management and supply chain are expected to benefit IVL businesses.
rPET resin is widely used for food and beverage packaging as well as fiber applications in Europe. The increasing demand for food grade rPET in Western Europe has been exceeding supply. Packaging and consumer product manufacturers are emphasizing on sustainability and circular economy, which is expected to drive market growth. Recycled PET is considered to be hygienic and is approved for food-contact applications in most countries around the globe.
Commenting on the acquisition, Aloke Lohia, group chief executive officer of Indorama Ventures said, “Indorama Ventures plays a key role in promoting the circular economy and environmental sustainability globally. We believe that the recycled PET packaging is one of the most responsible solutions to preserve resources and reducing PET containers in landfills. Indorama Ventures is playing its part by investing in recycling solutions globally.
With a comprehensive European network for bottle sourcing and good supply chain efficiencies, we believe that this acquisition will contribute to strong future growth in the sustainable recycling business.”
